Stimulus Bill Provides Help for Homebuyers
$8,000 First-time Homebuyer Tax Credit

The American Recovery and Reinvestment Act of 2009, also known as the Stimulus Bill, contains a First-time Homebuyer Tax Credit to make homeownership more affordable for first-time homebuyers.

This program allows first-time buyers to claim a tax credit of up to $8,000 (or 10% of the home's value, whichever is less) on their 2008 or 2009 taxes.  The credit does not have to be paid back provided the homeowner lives in the house for at least three years.

Following are some details of the updated First-time Homebuyer Tax Credit:

• A "first-time homebuyer" is defined as someone who has not owned a home in the last three years.
• The home purchase must close between January 1, 2009 and November 30, 2009 to qualify.
• Some income restrictions apply: qualified buyers must have a modified adjusted gross income (MAGI) below $75,000 if filing as single, or $150,000 for couples.  Higher income buyers may receive a partial credit.
• No extra paperwork is required to take advantage of this tax credit.

For more information, please contact a HomeStreet loan officer.